There Are Two Sides to the (Crypto) Coin
But Blockchain Technology May Be the Real Game Changer
We’ve been hearing about cryptocurrency a lot lately. Just like you, we’ve been reading, watching and listening to the news. We’ve also been speaking with our clients and colleagues, listening to their ideas as well as their concerns about digital currencies. Our industry is certainly evolving, and cryptocurrencies—in some form or other—are likely here to stay.
The views we hear about cryptocurrency vary from skepticism to enthusiasm, representing both sides of the spectrum. In recent months, we’ve seen wild price fluctuations in Bitcoin and other cryptocurrencies, which has helped some and hurt others—and has caused trepidation for many.
Comparisons have been made to the dot-com bubble that sent share prices of technology companies soaring, but when that bubble popped some of those companies did not survive. Cryptocurrencies may face some of those some challenges. Today more than 50 types of digital tokens are “mined,” and no one can be certain how many of those will thrive, much less survive.
But one thing we view as a potential game changer is blockchain, the technology that makes cryptocurrencies possible. Blockchain is an open source, digitally distributed ledger that records transactions as “blocks”. The technology has the potential to reshape the financial services industry, and other industries. Blockchain is an innovation that could change the way people and businesses engage.
Millennium Trust is assessing the risks and opportunities that cryptocurrencies and blockchain technology present. While we do not currently offer a custody solution for direct investment in cryptocurrency, we’ll continue to monitor the landscape. Our priority, as always, is to provide outstanding service to our clients.
Interested in learning more about cryptocurrency and blockchain? We’ve recently published a whitepaper titled “These Are Early Days for Cryptocurrencies and Blockchain” available for you to download.
The material in this blog is presented for informational purposes only. Millennium Trust Company performs the duties of a directed custodian, and as such does not sell investments or provide investment, legal or tax advice.